The Illinois Northern District Court has started a mediation program for a loan modifications.  You must apply or ask your attorney to request the modification through the court.

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The Program supplies an electronic portal that assists communication between debtors and lenders.  Details of the Program and sample forms are available here.

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The program is entirely voluntary: both debtor and lender must consent to participate. Debtors and lenders are also free to modify mortgage obligations without using the Program and the portal. The Program simply provides a new vehicle for doing so.

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This is an exciting program because if you've had difficulty securing a loan modification, this court ordered process allows you the opportunity to reach decision makers through the court.  If there's any possibility of a loan modification, this would your opportunity to be reviewed and considered for a modification.

 

I have seen that lenders are often a bit more flexible in considering loan modification now that they are facing a Debtor in bankruptcy.

 

For Illinois area borrowers that are facing foreclosure, if you had difficulty securing a loan modification, this mechanism provided by the court may be a great way to secure consideration of your modification request.  The joint effort of a Chapter 13 Bankruptcy and a court mediated application for a modification are powerful mechanisms to save your home from foreclosure.        

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The court rules on the procedure to ask for consideration of loan modification through the bankruptcy court are here